Monday, March 17, 2014

BVI Government Initialled FATCA Inter-governmental Agreement

The BVI and the US government concluded negotiations on the inter-governmental agreement (IGA) concerning the US Foreign Accounts Tax Compliance Act (FATCA). The initialling of the final text of the agreement now can be followed by its implementation in the British Virgin Islands. 

Upon signing of the agreement, foreign financial institutions in the jurisdiction that are required to comply with US FATCA, will be able to report certain information on US account holders to the BVI International Tax Authority who would automatically exchange information with the US government

By words of BVI Premier and minister of finance, Dr Orlando Smith, “The initialling of the FATCA IGA is another important signal of BVIs commitment to global standards on transparency.”

The conclusion of negotiations on the agreement was preceded by long lasting dialogue with the US Treasury in which the BVI government negotiated and received some exceptions for relevant entities such as non-profit organizations and pension plans and their accounts. Now the BVI is to put into place shortly the final legal and administrative procedures to facilitate the implementation of the agreement.

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